I am planning to transfer my home loan from HDFC to SBI. This loan started 3 months ago. Following are the main reasons I would like to transfer the loan

·Cannot prepayment every month. HDFC is asking to prepay only twice in a year. As per my current financial condition (NRI), I can prepay good amount of money every month. Then why should I wait for 6 month?

·Cannot transfer online. Every time need to visit branch for prepay. When I applied for loan, it was told that I can transfer online but now they say it’s not possible. I noticed that few users have posted comment that they can pay online but need some account detail. But for me HDFC is saying it is not possible.

·My current interest rate is 10.4%. They are increasing interest rate to 10.5 from Jan 2014. SBI is offering 10.3%.

Now my question is, Can I balance transfer after 3 months? Is there any fore-close fee? I know if it is from own source then there is no charge. Anybody have any experience?

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4 replies on this article “Home Loan Balance transfer from HDFC to SBI”

As you have rightly mentioned, there are no foreclosure fees to be paid. However, there may be a minimum duration after which you many foreclose/ switch your home loan account. Would request you to contact HDFC for the same.

Also, please read all the terms and conditions on your loan agreement carefully in case there are any additional charges etc.

1. It is advisible to transfer the loan if the difference in the borrowing interest is more than 2%

2. If you are NRI and currently out of India then it is difficult to get the loan sanctioned from SBI/transferred to SBI (even if you are in India, it will take approximately a month to avail loan from SBI)

3. Prepaying everymonth vs twice in a year will not make much difference at the end of tenor of the loan. You have to be disciplined, you can put the monthly pre payment money in RD for 6 month and you can pay the lumpsum amount after 6 months (rate you get on FD will be around 7.5%, interest rate you are paying is around 10.4%, it is not very substantial). I am assuming here that the loan amount is not more than 30-35 lakhs.

Best option is ask HDFC to provide the online facility to you to manage homeloan.

I just closed my first homeloan with SBI. I did not have problem to get that homelaon as it was approved project. I was happy with the prepayment process of SBI. It’s simple.

Getting loan from SBI is difficult especially if the project is not approved. That’s why I selected HDFC. But prepayment is a problem for HDFC. As per my current financial condition, I can prepay good amount of money every month. As per your suggestion I can do FD every month but still I will lose money. I would like to avoid that if I can.

I have sent mail to local SBI NRI branch in India. But not sure they will reply or not.

Would like to give it a try as if it does not work I will lose RS 1000 (processing fee). If it works I will be able to save some money.